Regulation 1102

Subsection 1102(1)

Paragraph 1102(1)(a)

Administrative Policy

92 CPTJ - Q.13

Where a "mothballed" facility is transferred by a parent to a subsidiary, is held by the subsidiary as in adventure of the nature of trade and...

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Paragraph 1102(1)(b)

Cases

C.A.E. Inc. v. Canada, 2013 DTC 5084 [at at 5944], 2013 FCA 92

The taxpayer leased or entered into leases by it of flight simulators it had manufactured. For financing reasons, it entered into sale and...

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Locations of other summaries		Wordcount
Tax Topics - Income Tax Act - Section 13 - Subsection 13(21) - Depreciable Property	characterization of depreciable property or inventory done on annual basis	371
Tax Topics - Income Tax Act - Section 13 - Subsection 13(7) - Paragraph 13(7)(a)	change in use on depreciable property conversion to inventory	124
Tax Topics - Income Tax Act - Section 45 - Subsection 45(1) - Paragraph 45(1)(a)	applied to conversion of depreciable property into inventory	184
Tax Topics - Income Tax Act - Section 9 - Capital Gain vs. Profit - Machinery and Equipment		371

Locations of other summaries		Wordcount
Tax Topics - Income Tax Act - Section 9 - Capital Gain vs. Profit - Real Estate	hope to dispose of at gain consistent with capital property	64
Tax Topics - Income Tax Regulations - Regulation 1100 - Subsection 1100(14)		79
Tax Topics - Income Tax Regulations - Regulation 1102 - Subsection 1102(1) - Paragraph 1102(1)(c)	capital gains from resale not a permitted purpose	63

Administrative Policy

25 September 2007 Internal T.I. 2007-0226751I7 F - Gain en capital versus revenu d'entreprise

The corporation’s regular activities involved the purchase of particular (redacted) types of equipment or vehicles that were damaged and/or...

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Words and Phrases

inventory

Locations of other summaries		Wordcount
Tax Topics - Income Tax Act - Section 9 - Capital Gain vs. Profit - Machinery and Equipment	the regular refurbishing, rental then sale at a gain of machines gave rise to business profits	109

20 July 2000 Internal T.I. 2000-0035017 - Conversion Capital Property to Inventory

When trucks of a leasing company reach the termination of the respective leases at the three-year point, there is a conversion of capital property...

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Locations of other summaries		Wordcount
Tax Topics - Income Tax Act - Section 9 - Computation of Profit		105

Paragraph 1102(1)(c)

Cases

Hickman Motors Ltd. v. Canada, 97 DTC 5363, [1997] 2 S.C.R. 336, [1998] 1 CTC 213

The taxpayer received equipment on the winding-up of the wholly-owned subsidiary and, five days later, transferred the same assets to another...

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Locations of other summaries		Wordcount
Tax Topics - General Concepts - Evidence	failure to report revenue did not evidence its non-receipt	42
Tax Topics - General Concepts - Onus	taxpayer demolished Minister's assumptions with uncontradicted testimony	52
Tax Topics - General Concepts - Payment & Receipt	unrecorded revenues	148
Tax Topics - Income Tax Act - Section 18 - Subsection 18(1) - Paragraph 18(1)(a) - Reasonable Expectation of Profit		85
Tax Topics - Income Tax Act - Section 20 - Subsection 20(1)	brief earning of rental income	130
Tax Topics - Income Tax Act - Section 3 - Paragraph 3(a) - Business Source/Reasonable Expectation of Profit	reasonable expectation of profit test directed only at existence of business source	85
Tax Topics - Income Tax Act - Section 4 - Subsection 4(1) - Paragraph 4(1)(a)	integrated farming equipment and auto leasing	95
Tax Topics - Income Tax Regulations - Regulation 1102 - Subsection 1102(14)	deemed property to be acquired for an income-producing purpose	37
Tax Topics - Statutory Interpretation - Drafting Style	absence of specific-hold period was telling	85
Tax Topics - Statutory Interpretation - Expressio Unius est Exclusio Alterius		69
Tax Topics - Statutory Interpretation - Interpretation Act - Section 16		26

Interprovincial Co-operative Ltd. v. The Queen, 87 DTC 5115, [1987] 1 CTC 222 (FCTD)

A manufacturing plant which had been shut down and foreclosed upon several years previously was reacquired by the taxpayer because its parent had...

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Locations of other summaries		Wordcount
Tax Topics - General Concepts - Onus		62
Tax Topics - Income Tax Act - Section 135 - Subsection 135(4) - Income of the Taxpayer Attributable to Business Done With Members		53

Roywood Investments Ltd. v. The Queen, 79 DTC 5451, [1980] CTC 19 (FCTD), aff'd 81 DTC 5148, [1981] CTC 206 (FCA)

The sole purpose of the taxpayer in purchasing land with a building was to realize a substantial capital gain from the property when the...

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Locations of other summaries		Wordcount
Tax Topics - Income Tax Act - Section 152 - Subsection 152(4) - Paragraph 152(4)(c)		70
Tax Topics - Income Tax Act - Section 68		67

Bureau et Bureau Inc. v. The Queen, 78 DTC 6562, [1978] CTC 695 (FCTD)

It was found that several old residential and commercial buildings had been purchased by the appellant with the intention of eventually...

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Ben’s Ltd. v. MNR, 55 DTC 1152, [1955] CTC 249 (Ex Ct)

In order to expand its factory, the taxpayer acquired three adjoining properties comprising land and three dwelling houses. In finding that the...

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Locations of other summaries		Wordcount
Tax Topics - Income Tax Act - Section 160 - Subsection 160(1)	s. 160 did not apply to a sale of companies holding cash sales proceeds to a purchaser who purported to eliminate the tax liability	785
Tax Topics - Income Tax Act - Section 245 - Subsection 245(1) - Tax Benefit	no tax benefit based on comparison to a commercially unrealistic alternative	276
Tax Topics - Income Tax Act - Section 245 - Subsection 245(3)	no avoidance transaction where there was no intention to avoid the provision purportedly abused	339
Tax Topics - General Concepts - Onus	unfair to place the onus on taxpayer re facts which taxpayer could not reasonably be expected to know	339

Locations of other summaries		Wordcount
Tax Topics - General Concepts - Ownership	beneficial ownership in patents	434
Tax Topics - Income Tax Act - Section 79.1 - Subsection 79.1(2)	beneficial ownership in patents	434

Locations of other summaries		Wordcount
Tax Topics - Income Tax Act - Section 13 - Subsection 13(21) - Depreciable Property	title not held by GP on behalf of partnership	122
Tax Topics - Income Tax Act - Section 18 - Subsection 18(1) - Paragraph 18(1)(a) - Income-Producing Purpose	expenses mere window-dressing	135
Tax Topics - Income Tax Act - Section 20 - Subsection 20(1) - Paragraph 20(1)(c)	no source required if reasonable expectation of income	241
Tax Topics - Income Tax Act - Section 3 - Paragraph 3(a) - Business Source/Reasonable Expectation of Profit	fraudulent scheme not a source	240
Tax Topics - Income Tax Act - Section 96	GP had fraudulent intention	241

Locations of other summaries		Wordcount
Tax Topics - Income Tax Act - Section 18 - Subsection 18(1) - Paragraph 18(1)(a) - Income-Producing Purpose		119

Locations of other summaries		Wordcount
Tax Topics - Income Tax Act - Section 9 - Capital Gain vs. Profit - Real Estate	hope to dispose of at gain consistent with capital property	64
Tax Topics - Income Tax Regulations - Regulation 1100 - Subsection 1100(14)		79
Tax Topics - Income Tax Regulations - Regulation 1102 - Subsection 1102(1) - Paragraph 1102(1)(b)		111

Locations of other summaries		Wordcount
Tax Topics - Income Tax Act - Section 13 - Subsection 13(21) - Undepreciated Capital Cost - A		102

Locations of other summaries		Wordcount
Tax Topics - General Concepts - Evidence		122
Tax Topics - General Concepts - Purpose/Intention	intention objectively determined having regard to the material presented to investors	83
Tax Topics - Income Tax Act - Section 13 - Subsection 13(21) - Undepreciated Capital Cost - A		202
Tax Topics - Income Tax Act - Section 96 - Subsection 96(2.2) - Paragraph 96(2.2)(d)		118
Tax Topics - Income Tax Regulations - Regulation 1100 - Subsection 1100(15)		113

Locations of other summaries		Wordcount
Tax Topics - General Concepts - Fair Market Value - Other		209
Tax Topics - Income Tax Act - Section 13 - Subsection 13(21) - Undepreciated Capital Cost - A		71
Tax Topics - Income Tax Act - Section 13 - Subsection 13(27) - Paragraph 13(27)(d)		143
Tax Topics - Income Tax Act - Section 251 - Subsection 251(1) - Paragraph 251(1)(c)	partnership purchase was NAL given that GP's shareholder acted in concert with vendor	145
Tax Topics - Income Tax Act - Section 96 - Subsection 96(2.2) - Paragraph 96(2.2)(d)		69

Administrative Policy

13 July 2012 External T.I. 2012-0443281E5 F - DPA- véhicule dans le cadre d'un bien locatif

CRA indicated that there was no particular reason to consider that capital cost allowance (CCA) for a motor vehicle that is used by a taxpayer to...

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22 March 2012 External T.I. 2011-0425571E5 F - Avantage imposable - maison habitée sans frais

Can a corporation claim capital cost allowance ("CCA") on a house it owns, but which is made available for habitation by an employee-shareholder...

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23 January 2012 External T.I. 2011-0409671E5 F - Propriété superficiaire

Corporation A erected, at its expense and for exclusive use in its transport business, a detached garage on the land on which the principal...

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Locations of other summaries		Wordcount
Tax Topics - Income Tax Act - Section 54 - Principal Residence - Paragraph (e)	land leased to corporation for business use not part of principal residence	160
Tax Topics - Income Tax Act - Section 15 - Subsection 15(1)	benefit if building constructed at corporation’s expense for business purposes becomes shareholder’s property by accession	154
Tax Topics - General Concepts - Ownership	whether tenant had Quebec right of superficies to garage erected by it determined whether it was its property	91
Tax Topics - Income Tax Act - Section 13 - Subsection 13(21) - Depreciable Property	building erected by corporation on shareholder’s land not depreciable property unless shareholder renounces right of accession	223

18 May 2011 External T.I. 2011-0392441E5 F - Outils - déduction pour amortissement

After finding that small tools that the taxpayer purchased at a unit cost of less than $200 to maintain the units in a rental building (one of...

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Locations of other summaries		Wordcount
Tax Topics - Income Tax Regulations - Schedules - Schedule II - Class 12 - Paragraph (c)	small tools were Class 12 assets rather than currently deductible	127

21 September 2010 Internal T.I. 2010-0377011I7 F - Dépenses de vêtements - travailleur indépendant

In finding that CCA could not be deducted by a self-employed welder following the acquisition of steel-toed work boots and fire-resistant...

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Locations of other summaries		Wordcount
Tax Topics - Income Tax Act - Section 18 - Subsection 18(1) - Paragraph 18(1)(h)	no deduction to self-employed welder for work boots and fire-resistant clothing	98

S3-F4-C1 - General Discussion of Capital Cost Allowance

Demolished building

1.56 [A] taxpayer might purchase real estate that includes a building and tear down the building relatively soon after the...

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Locations of other summaries		Wordcount
Tax Topics - Income Tax Act - Section 18 - Subsection 18(1) - Paragraph 18(1)(b) - Capital Expenditure v. Expense - Improvements v. Repairs or Running Expense		556
Tax Topics - Income Tax Act - Section 13 - Subsection 13(21) - Undepreciated Capital Cost - A		791
Tax Topics - Income Tax Act - Section 13 - Subsection 13(21) - Depreciable Property		324
Tax Topics - Income Tax Act - Section 16.1 - Subsection 16.1(1)		275
Tax Topics - Income Tax Act - Section 13 - Subsection 13(28)		254
Tax Topics - Income Tax Act - Section 13 - Subsection 13(27)		222
Tax Topics - Income Tax Act - Section 13 - Subsection 13(29)		155
Tax Topics - Income Tax Regulations - Regulation 1100 - Subsection 1100(2)		212
Tax Topics - Income Tax Regulations - Regulation 1100 - Subsection 1100(2.2)		351
Tax Topics - Income Tax Regulations - Regulation 1100 - Subsection 1100(3)		70
Tax Topics - Income Tax Act - Section 18 - Subsection 18(3.1)		166
Tax Topics - Income Tax Act - Section 13 - Subsection 13(7.5)		207
Tax Topics - Income Tax Act - Section 261 - Subsection 261(2)		65
Tax Topics - Income Tax Act - Section 128.1 - Subsection 128.1(1) - Paragraph 128.1(1)(b)		230
Tax Topics - Income Tax Act - Section 13 - Subsection 13(7) - Paragraph 13(7)(e)		65
Tax Topics - Income Tax Act - Section 43 - Subsection 43(1)		152
Tax Topics - Income Tax Act - Section 68		197
Tax Topics - Income Tax Act - Section 13 - Subsection 13(21.1) - Paragraph 13(21.1)(a)		75
Tax Topics - Income Tax Act - Section 13 - Subsection 13(21.1) - Paragraph 13(21.1)(b)		212
Tax Topics - Income Tax Act - Section 13 - Subsection 13(1)		431
Tax Topics - Income Tax Act - Section 8 - Subsection 8(2)		75
Tax Topics - Income Tax Act - Section 20 - Subsection 20(16.1)		152
Tax Topics - Income Tax Act - Section 13 - Subsection 13(9)		229
Tax Topics - Income Tax Act - Section 152 - Subsection 152(4)		321
Tax Topics - Income Tax Regulations - Schedules - Schedule II - Class 8		237
Tax Topics - Income Tax Act - Section 13 - Subsection 13(5)		317
Tax Topics - Income Tax Act - Section 13 - Subsection 13(6)		221

28 May 2004 Internal T.I. 2004-0065101I7 F - Tenures à bail - Catégorie 13 et loyers

The taxpayer carried on its business in rented premises to which it made leasehold improvements, and then relocated to leased premises (to which...

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Locations of other summaries		Wordcount
Tax Topics - Income Tax Act - Section 18 - Subsection 18(1) - Paragraph 18(1)(a) - Start-Up and Liquidation Costs	rent on premises continued to be deductible after they were vacated	136
Tax Topics - Income Tax Act - Section 13 - Subsection 13(7) - Paragraph 13(7)(a)	no change of use when premises were vacated	180
Tax Topics - Income Tax Act - Section 13 - Subsection 13(21) - Disposition of Property	no disposition when premises were vacated (but not abandoned)	254

1 August 2003 Internal T.I. 2003-0009697 F - Usufruit et amortissement

In 1990, an individual died and bequeathed the usufruct of an immovable to a friend. CCRA noted that, in the absence of the application of the...

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Locations of other summaries		Wordcount
Tax Topics - Income Tax Act - Section 248 - Subsection 248(3)	s. 248(3) generates CCA claim to deemed trust, whereas previously no CCA was available	109

14 March 2003 External T.I. 2003-0002465 F - Usu-droit privé franc.- nu- prop. Canadien

The taxpayer acquired, by will, the bare ownership (under French law) of a French rental property, with the rental income therefrom going to her...

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Locations of other summaries		Wordcount
Tax Topics - Income Tax Act - Section 45 - Subsection 45(1) - Paragraph 45(1)(a)	change of use to bare owner when usufruct over French rental property was extinguished	95

21 January 2003 External T.I. 2001-0109445 F - Usufruit-droit privé français-nu-prop. Cdn.

At the time of the death in 1985 of the taxpayer’s father, the usufruct under French law of a rental property located in France vested in the...

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Locations of other summaries		Wordcount
Tax Topics - Income Tax Act - Section 70 - Subsection 70(5)	when usufruct created by will, legatee of bare ownership acquired it at FMV of bare ownership	84

5 March 2002 Internal T.I. 2001-0102757 F - PERTE FINALE

In order to enlarge the parking lot on its existing rental property and improve the visibility of the existing buildings, the taxpayer acquired an...

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Locations of other summaries		Wordcount
Tax Topics - Income Tax Act - Section 54 - Adjusted Cost Base	cost of moving rental building off land for subsequent sale, in order to construct parking lot and create more space for existing rental buildings, was addition to ACB of land	161

Income Tax Regulation News, Release No. 3, 30 January, 1995 under "Use of a Partner's Assets by a Partnership"

Where a property is acquired by a partner for the purpose of making it available to the partnership to be used in carrying on the business of the...

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Locations of other summaries		Wordcount
Tax Topics - Income Tax Act - Section 20 - Subsection 20(1) - Paragraph 20(1)(c)		72
Tax Topics - Income Tax Act - Section 97 - Subsection 97(1)		38

Income Tax Regulation News, Release No. 3, 30 January 1995, under "Loss Utilization within a Corporate Group"

Whether the reasoning in Hickman Motors (93 DTC 5040, [1993] 1 CTC 36) applies to a particular loss-consolidation scheme "will depend on all of...

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Rulings Directorate Discussion and Position Paper on Motion Picture Films and Video Tapes as Tax Shelters, Version 29/3/93 930501 (C.T.O. "Motion Picture Films C.C.A.")

Favourable income tax rulings will not be given where there is a probability that a partnership acquiring a film will not make an economic profit...

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21 November 1990 Memorandum (Tax Window, Prelim. No. 2, p. 8, ¶1074)

A partner is not permitted to deduct any CCA on assets owned by the partner and used in the partnership business unless a fair market value rent...

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81 CR - Q.23

Where a partnership uses assets of a partner, the partner is entitled to claim CCA provided that a fair market value rental is charged to the...

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Locations of other summaries		Wordcount
Tax Topics - Income Tax Act - Section 13 - Subsection 13(21) - Undepreciated Capital Cost - A		90
Tax Topics - Income Tax Act - Section 18 - Subsection 18(1) - Paragraph 18(1)(a) - Timing		30
Tax Topics - Income Tax Act - Section 96 - Subsection 96(1) - Paragraph 96(1)(f)		38

Paragraph 1102(1)(d)

Locations of other summaries		Wordcount
Tax Topics - Income Tax Act - Section 13 - Subsection 13(7) - Paragraph 13(7)(e)	software that was not depreciable property to the transferor because it was written off as SR&ED was not subject to s. 13(7)(e) to the NAL transferee	294
Tax Topics - Income Tax Act - Section 13 - Subsection 13(21) - Depreciable Property	software for which no CCA claims had been made because its development costs were deducted as SR&ED, was not depreciable property	465

Locations of other summaries		Wordcount
Tax Topics - Income Tax Act - Section 13 - Subsection 13(7) - Paragraph 13(7)(e)	software whose development was deducted under s. 37 could be stepped up on a related-party transfer notwithstanding s. 13(7)(e)	476
Tax Topics - Income Tax Act - Section 14 - Subsection 14(5) - Cumulative Eligible Capital - Variable E	software created through currently deductible salary expense was disposed of as eligible capital property rather than depreciable property	296

Paragraph 1102(1)(e)

Locations of other summaries		Wordcount
Tax Topics - Statutory Interpretation - Interpretation/Definition Provisions	"deems" has several meanings	110
Tax Topics - Statutory Interpretation - Noscitur a Sociis	no implied similarity requirement	158

Administrative Policy

18 June 2015 External T.I. 2015-0580391E5 F - Achat et location d'oeuvres d'art

Can a taxpayer claim capital cost allowance respecting amounts paid for the acquisition of works of art for the interior decoration of offices or...

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8 October 2010 Roundtable, 2010-0373311C6 F - Oeuvres d'artistes étrangers

A public corporation acquires such works of art from foreign artists, for example, paintings that are used to decorate the boardroom in a...

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Locations of other summaries		Wordcount
Tax Topics - Income Tax Act - Section 54 - Listed Personal Property	art work in corporate boardroom is not personal use property, perhaps also where decorates office	197
Tax Topics - Income Tax Act - Section 15 - Subsection 15(1)	art used to decorate the office of a shareholder-employee generally does not generate a s. 15(1) benefit	92

12 October 1994 External T.I. 9420045 - CANADIAN'S ARTOWRK

Property that is jointly created by a Canadian and a non-Canadian artist will not qualify for the exception for property created by an individual...

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Regulation 1102(2)

Administrative Policy

7 October 2016 APFF Financial Strategies and Instruments Roundtable Q. 4, 2016-0651791C6 F - Choix 45(2) et (3) - immeuble à logements

Before indicating that, if a duplex property is used more than 50% for rental use, so that it is not personal-use property, a capital loss...

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Words and Phrases

land

Locations of other summaries		Wordcount
Tax Topics - Income Tax Act - Section 45 - Subsection 45(3)	invalidity of s. 45(3) elections on duplex units applied only for changes of use after February 21, 2012	185
Tax Topics - Income Tax Act - Section 54 - Personal-Use Property	land underlying duplex used 40% personally is not personal-use property	233
Tax Topics - Income Tax Act - Section 40 - Subsection 40(2) - Paragraph 40(2)(g) - Subparagraph 40(2)(g)(iii)	capital loss recognition on land underlying duplex used 40% personally	78

2 May 2002 Internal T.I. 2002-0122607 F - BIENS A USAGE PERSONNEL

On the disposition by an individual of a cottage which is a personal-use property (“PUP”) but not his principal residence, he realizes a...

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Locations of other summaries		Wordcount
Tax Topics - Income Tax Act - Section 248 - Subsection 248(1) - Property	where Reg. 1102(2) does not apply, land and building are a single property generating a single gain	158

Subsection 1102(4) - Improvements or Alterations to Leased Properties

Administrative Policy

18 May 2022 Internal T.I. 2018-0788761I7 F - Amortissement – Travaux sur un bien loué et F&T

The taxpayer, which subleased premises containing “Shells” consisting essentially of foundations, walls and roofs, installed wall and floor...

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Locations of other summaries		Wordcount
Tax Topics - Income Tax Regulations - Regulation 1102 - Subsection 1102(5) - Paragraph 1102(5)(a) - Subparagraph 1102(5)(a)(iii)	rendering of an empty shell suitable for manufacturing constituted substantially changing its nature	288
Tax Topics - Income Tax Regulations - Schedules - Schedule II - Class 8 - Paragraph 8(b)	property does not satisfy the “solely” test in Class 8(b) where it was necessary for the proper functioning of the building	265
Tax Topics - Income Tax Act - Section 13 - Subsection 13(21) - Undepreciated Capital Cost - A	cost of installing property part of that property’s cost	357
Tax Topics - General Concepts - Ownership	leasehold improvements are assimilated to the landlord’s property unless the lease specifies otherwise	101
Tax Topics - Income Tax Regulations - Regulation 1102 - Subsection 1102(5)	building shell was a building or structure/ addition refers to extension of structure	294

IT-464R "Capital Cost Allowance - Leasehold Interest"

Locations of other summaries		Wordcount
Tax Topics - Income Tax Act - Section 13 - Subsection 13(21) - Undepreciated Capital Cost - A		0
Tax Topics - Income Tax Act - Section 13 - Subsection 13(5.1)		0
Tax Topics - Income Tax Regulations - Schedules - Schedule II - Class 13		0
Tax Topics - Income Tax Regulations - Regulation 1102 - Subsection 1102(5)		194

Subsection 1102(5) - Buildings on Leased Properties

Administrative Policy

18 May 2022 Internal T.I. 2018-0788761I7 F - Amortissement – Travaux sur un bien loué et F&T

The taxpayer, which subleased premises containing “Shells” consisting essentially of foundations, walls and roofs, installed wall and floor...

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Words and Phrases

building structure addition

Locations of other summaries		Wordcount
Tax Topics - Income Tax Regulations - Regulation 1102 - Subsection 1102(5) - Paragraph 1102(5)(a) - Subparagraph 1102(5)(a)(iii)	rendering of an empty shell suitable for manufacturing constituted substantially changing its nature	288
Tax Topics - Income Tax Regulations - Schedules - Schedule II - Class 8 - Paragraph 8(b)	property does not satisfy the “solely” test in Class 8(b) where it was necessary for the proper functioning of the building	265
Tax Topics - Income Tax Act - Section 13 - Subsection 13(21) - Undepreciated Capital Cost - A	cost of installing property part of that property’s cost	357
Tax Topics - Income Tax Regulations - Regulation 1102 - Subsection 1102(4)	to be improvements or alterations to leasehold interest, property acquisitions must be assimilated to landlord’s property	225
Tax Topics - General Concepts - Ownership	leasehold improvements are assimilated to the landlord’s property unless the lease specifies otherwise	101

7 August 2014 External T.I. 2014-0528841E5 F - Changement à une résidence principale

A taxpayer renovates the basement of his home by adding a separate door, permitting access from the outside, in order to establish offices there...

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Locations of other summaries		Wordcount
Tax Topics - Income Tax Act - Section 45 - Subsection 45(1) - Paragraph 45(1)(c)	addition of a door to an exterior wall could be considered a structural change triggering a change of use	136
Tax Topics - Income Tax Act - Section 15 - Subsection 15(1)	taxable benefit if renovations paid for by tenant-corporation increase the FMV of property to owner-shareholder	96

2015 Ruling 2014-0552291R3 - Paragraph 1102(5)(a) of the Regulations

Funding and erection of Apartment Base.

Two arm's length corporations (ACo and ALP PartnerCo) and a GP jointly owned by them (RealLPGPCo) jointly...

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20 July 2001 External T.I. 2001-0087205 F - BAIL TRAITEMENT DU PRENEUR

After discussing its general position that a lease is a lease and a sale a sale, CCRA stated:

Where a lessee, having entered into an emphyteutic...

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Locations of other summaries		Wordcount
Tax Topics - General Concepts - Substance	distinction between a sale and a lease is based on the legal terms of the arrangement	199
Tax Topics - Income Tax Act - Section 13 - Subsection 13(21) - Proceeds of Disposition - Paragraph (a)	distinction between a sale and a lease is based on whether legally there is a sale or lease	180

17 August 1994 External T.I. 9415235 - CAPITAL COST ALLOWANCE

Because Regulation 1102(5) is considered to apply to any building referred to in Schedule II which is either a building or a structure, and is not...

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Revenue Canada Round Table CTF-1992 Conference, Q. 70 No. 922851 (Not Included in Final Report)

Regulation 1102(5) is restricted to references made in Schedule II to a building or other structure and does not deem the leasehold interest to be...

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IT-464R "Capital Cost Allowance - Leasehold Interest"

Exclusions from capital cost of leasehold interest

6. Certain amounts paid by a tenant in respect of a lease are not considered to form part of...

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Locations of other summaries		Wordcount
Tax Topics - Income Tax Act - Section 13 - Subsection 13(21) - Undepreciated Capital Cost - A		0
Tax Topics - Income Tax Act - Section 13 - Subsection 13(5.1)		0
Tax Topics - Income Tax Regulations - Schedules - Schedule II - Class 13		0
Tax Topics - Income Tax Regulations - Regulation 1102 - Subsection 1102(4)		0

Paragraph 1102(5)(a)

Subparagraph 1102(5)(a)(iii)

Administrative Policy

18 May 2022 Internal T.I. 2018-0788761I7 F - Amortissement – Travaux sur un bien loué et F&T

The taxpayer, which subleased premises containing “Shells” consisting essentially of foundations, walls and roofs, installed wall and floor...

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Words and Phrases

substantially changed

Locations of other summaries		Wordcount
Tax Topics - Income Tax Regulations - Schedules - Schedule II - Class 8 - Paragraph 8(b)	property does not satisfy the “solely” test in Class 8(b) where it was necessary for the proper functioning of the building	265
Tax Topics - Income Tax Act - Section 13 - Subsection 13(21) - Undepreciated Capital Cost - A	cost of installing property part of that property’s cost	357
Tax Topics - Income Tax Regulations - Regulation 1102 - Subsection 1102(4)	to be improvements or alterations to leasehold interest, property acquisitions must be assimilated to landlord’s property	225
Tax Topics - General Concepts - Ownership	leasehold improvements are assimilated to the landlord’s property unless the lease specifies otherwise	101
Tax Topics - Income Tax Regulations - Regulation 1102 - Subsection 1102(5)	building shell was a building or structure/ addition refers to extension of structure	294

Subsection 1102(14) - Property Acquired by Transfer, Amalgamation or Winding-Up

Cases

Hickman Motors Ltd. v. Canada, 97 DTC 5363, [1997] 2 S.C.R. 336, [1998] 1 CTC 213

Regulation 1102(14) deemed the taxpayer to have acquired assets for the purpose of gaining or producing income because it received those assets as...

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Locations of other summaries		Wordcount
Tax Topics - General Concepts - Evidence	failure to report revenue did not evidence its non-receipt	42
Tax Topics - General Concepts - Onus	taxpayer demolished Minister's assumptions with uncontradicted testimony	52
Tax Topics - General Concepts - Payment & Receipt	unrecorded revenues	148
Tax Topics - Income Tax Act - Section 18 - Subsection 18(1) - Paragraph 18(1)(a) - Reasonable Expectation of Profit		85
Tax Topics - Income Tax Act - Section 20 - Subsection 20(1)	brief earning of rental income	130
Tax Topics - Income Tax Act - Section 3 - Paragraph 3(a) - Business Source/Reasonable Expectation of Profit	reasonable expectation of profit test directed only at existence of business source	85
Tax Topics - Income Tax Act - Section 4 - Subsection 4(1) - Paragraph 4(1)(a)	integrated farming equipment and auto leasing	95
Tax Topics - Income Tax Regulations - Regulation 1102 - Subsection 1102(1) - Paragraph 1102(1)(c)	generation of revenue for a short time was sufficient	352
Tax Topics - Statutory Interpretation - Drafting Style	absence of specific-hold period was telling	85
Tax Topics - Statutory Interpretation - Expressio Unius est Exclusio Alterius		69
Tax Topics - Statutory Interpretation - Interpretation Act - Section 16		26

Administrative Policy

2019 Ruling 2018-0772921R3 - Loss utilization

Aco, and its subsidiary Bco, have available capital losses that they wish to use in stepping up the undepreciated capital cost of trademarks...

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Locations of other summaries		Wordcount
Tax Topics - Income Tax Act - Section 13 - Subsection 13(7) - Paragraph 13(7)(e) - Subparagraph 13(7)(e)(ii)	net capital losses used to step up UCC of trademarks	354
Tax Topics - Income Tax Act - Section 111 - Subsection 111(1) - Paragraph 111(1)(b)	self-cancelling circular transaction to convert net capital losses into stepped-up UCC	85

22 June 2015 Internal T.I. 2014-0553731I7 - Deduction of Terminal Loss - Wind-up

On the winding-up of Subco into Parentco (which had held only investments) under s. 88(1), Parentco received the "Property," which had been...

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Locations of other summaries		Wordcount
Tax Topics - Income Tax Act - Section 13 - Subsection 13(7) - Paragraph 13(7)(a)	property remaining idle after deemed acquisition as depreciable property not a change of use	176
Tax Topics - Income Tax Act - Section 20 - Subsection 20(1)	deemed depreciable property in fact not used for income-producing purpose	199

S4-F7-C1 - Amalgamations of Canadian Corporations

1.33 …[W]here a predecessor corporation was not dealing at arm's length (otherwise than because of a right referred to in paragraph 251(5)(b))...

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Locations of other summaries		Wordcount
Tax Topics - Income Tax Act - Section 100 - Subsection 100(2.1)	s. 100(2.1) applies to non-qualifying amalgamation	64
Tax Topics - Income Tax Act - Section 111 - Subsection 111(12)	application following amalgamation	113
Tax Topics - Income Tax Act - Section 116 - Subsection 116(1)	deemed tcp following amalgamation	167
Tax Topics - Income Tax Act - Section 13 - Subsection 13(5.1)	continuity of s. 13(5.1) on amalgamation	132
Tax Topics - Income Tax Act - Section 165 - Subsection 165(1)	Amalco can continue objection and receive refunds	157
Tax Topics - Income Tax Act - Section 169	Amalco can continue objection	103
Tax Topics - Income Tax Act - Section 20 - Subsection 20(1) - Paragraph 20(1)(n)	reserve after amalgamation	62
Tax Topics - Income Tax Act - Section 248 - Subsection 248(1) - Shareholder	shareholder need not hold shares	88
Tax Topics - Income Tax Act - Section 251 - Subsection 251(3.1)	deemed non-arm's length relationship on amalgamation	172
Tax Topics - Income Tax Act - Section 256 - Subsection 256(7) - Paragraph 256(7)(b)	related party, majority and 50% group exceptions	495
Tax Topics - Income Tax Act - Section 40 - Subsection 40(1) - Paragraph 40(1)(a) - Subparagraph 40(1)(a)(iii)	reserve after amalgamation	62
Tax Topics - Income Tax Act - Section 66.7 - Subsection 66.7(7)	successoring where non-wholly owned amalgamation	109
Tax Topics - Income Tax Act - Section 69 - Subsection 69(13)	no disposition of predecessor property on general principles	113
Tax Topics - Income Tax Act - Section 7 - Subsection 7(1.4)	s. 87(5) not applicable	112
Tax Topics - Income Tax Act - Section 80.01 - Subsection 80.01(3)	non-87 amalgamation/no FX gain	165
Tax Topics - Income Tax Act - Section 84 - Subsection 84(3)	no deemed dividend to dissenter on amalgamation	87
Tax Topics - Income Tax Act - Section 85 - Subsection 85(1)	election filing by Amalco	109
Tax Topics - Income Tax Act - Section 87 - Subsection 87(1.1)	s. 87(1.1) qualifies for all s. 87 purposes	66
Tax Topics - Income Tax Act - Section 87 - Subsection 87(1.2)	successoring where non-wholly owned amalgamation	109
Tax Topics - Income Tax Act - Section 87 - Subsection 87(10)	deemed listing of temporary Amalco shares	120
Tax Topics - Income Tax Act - Section 87 - Subsection 87(11)	gain if high PUC is sub shares	55
Tax Topics - Income Tax Act - Section 87 - Subsection 87(1)	presumptive satisfaction of s. 87(1)(a)/dissent and squeeze-outs onside	297
Tax Topics - Income Tax Act - Section 87 - Subsection 87(2) - Paragraph 87(2)(a)	new corp/deemed year end coinciding or not with acquisition of control	758
Tax Topics - Income Tax Act - Section 87 - Subsection 87(2) - Paragraph 87(2)(b)	Amalco must follow predecessor's valuation method subject to truer picture doctrine	64
Tax Topics - Income Tax Act - Section 87 - Subsection 87(2) - Paragraph 87(2)(c)	reserve after amalgamation	113
Tax Topics - Income Tax Act - Section 87 - Subsection 87(2) - Paragraph 87(2)(d)	cost amount carryover	149
Tax Topics - Income Tax Act - Section 87 - Subsection 87(2) - Paragraph 87(2)(e.1)	s. 100(2.1) applies to non-qualifying amalgamation	64
Tax Topics - Income Tax Act - Section 87 - Subsection 87(2) - Paragraph 87(2)(o)	no continuity rule for non-security options	139
Tax Topics - Income Tax Act - Section 87 - Subsection 87(2) - Paragraph 87(2)(q)	pre-amalgamation services	106
Tax Topics - Income Tax Act - Section 87 - Subsection 87(2.11)	loss-carry back to parent	169
Tax Topics - Income Tax Act - Section 87 - Subsection 87(2.1)	dovetailing with s. 88(1.1)	44
Tax Topics - Income Tax Act - Section 87 - Subsection 87(3.1)		346
Tax Topics - Income Tax Act - Section 87 - Subsection 87(3)	PUC shifts	189
Tax Topics - Income Tax Act - Section 87 - Subsection 87(4)	fractional share cash/ACB or value shift/implied non-recognition for predecessor shares	281
Tax Topics - Income Tax Act - Section 87 - Subsection 87(7)	dovetailing with s. 78 and 112(12)	191
Tax Topics - Income Tax Act - Section 87 - Subsection 87(9)	allocation of s. 87(9)(c)(ii) excess as parent chooses	230
Tax Topics - Income Tax Act - Section 88 - Subsection 88(1) - Paragraph 88(1)(d)	late designation	122
Tax Topics - Income Tax Act - Section 88 - Subsection 88(1.1)	dovetailing with s. 87(2.1)	62
Tax Topics - Income Tax Act - Section 98 - Subsection 98(5)	partnership dissolution on amalgamation	137
Tax Topics - Income Tax Regulations - Regulation 1100 - Subsection 1100(2.2)	deemed non-arm's length relationship on amalgamation	467
Tax Topics - Income Tax Regulations - Regulation 1100 - Subsection 1100(2)	deemed non-arm's length relationship on amalgamation	371
Tax Topics - Income Tax Regulations - Regulation 8503 - Subsection 8503(3) - Paragraph 8503(3)(b)	pre-amalgamation services	106
Tax Topics - Income Tax Act - Section 249 - Subsection 249(3)		136
Tax Topics - Income Tax Act - Section 22 - Subsection 22(1)		179

10 April 1997 T.I. 970422

A building was transferred to a company in a non-arm's length transaction (so that Regulation 1102(14)(d) applied) and the company thereupon...

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90 C.R. - Q38

Where s. 251(3.1) deems Amalco and the predecessors to be related persons, s. 1102(14) will deem the property acquired by Amalco from the...

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Subsection 1102(23)

Administrative Policy

13 March 2017 External T.I. 2016-0626641E5 F - Election - Subsection 1101(5b.1) Reg.

CRA considered that if there are two separate additions to a pre-2007 non-residential building, an election under Reg. 1101(5b.1) must be made on...

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Locations of other summaries		Wordcount
Tax Topics - Income Tax Regulations - Regulation 1101 - Subsection 1101(5b.1)	only one Reg. 1101(5b.1) election is required where work on an addition to a non-residential building extends over more than one year	338

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Regulation 1102

Table of Contents

Subsection 1102(1)

Paragraph 1102(1)(a)

Administrative Policy

92 CPTJ - Q.13

Paragraph 1102(1)(b)

Cases

C.A.E. Inc. v. Canada, 2013 DTC 5084 [at at 5944], 2013 FCA 92

See Also

Sivasubramaniam v. The Queen, 2008 DTC 3886, 2008 TCC 261 (Informal Procedure)

Administrative Policy

Paragraph 1102(1)(c)

Cases

Hickman Motors Ltd. v. Canada, 97 DTC 5363, [1997] 2 S.C.R. 336, [1998] 1 CTC 213

Interprovincial Co-operative Ltd. v. The Queen, 87 DTC 5115, [1987] 1 CTC 222 (FCTD)

Roywood Investments Ltd. v. The Queen, 79 DTC 5451, [1980] CTC 19 (FCTD), aff'd 81 DTC 5148, [1981] CTC 206 (FCA)

Bureau et Bureau Inc. v. The Queen, 78 DTC 6562, [1978] CTC 695 (FCTD)

Ben’s Ltd. v. MNR, 55 DTC 1152, [1955] CTC 249 (Ex Ct)

See Also

Damis Properties Inc. v. The Queen, 2021 TCC 24

568864 B.C. Ltd. v. The Queen, 2014 TCC 373

Garber v. The Queen, 2014 DTC 1045 [at at 2812], 2014 TCC 1

Jolly Farmer Products Inc. v. The Queen, 2008 DTC 4396, 2008 TCC 409

Sivasubramaniam v. The Queen, 2008 DTC 3886, 2008 TCC 261 (Informal Procedure)

Sherman v. The Queen, 2008 DTC 3069, 2008 TCC 186, aff'd 2009 DTC 5681, 2009 FCA 9

McCoy v. The Queen, 2003 DTC 660, 2003 TCC 332

Brown v. The Queen, 2001 DTC 1094 (TCC), aff'd supra 2003 DTC 5298 (FCA)

Gascho Farms Ltd. v. The Queen, 97 DTC 808, [1997] 1 CTC 2092 (TCC)

Malatest v. The Queen, 94 DTC 1779 (TCC), briefly aff'd 96 DTC 6377 (FCA)

Moldaver v. MNR, 92 DTC 1564, [1992] 2 CTC 2055 (TCC)

Administrative Policy

Income Tax Regulation News, Release No. 3, 30 January, 1995 under "Use of a Partner's Assets by a Partnership"

Income Tax Regulation News, Release No. 3, 30 January 1995, under "Loss Utilization within a Corporate Group"

Rulings Directorate Discussion and Position Paper on Motion Picture Films and Video Tapes as Tax Shelters, Version 29/3/93 930501 (C.T.O. "Motion Picture Films C.C.A.")

21 November 1990 Memorandum (Tax Window, Prelim. No. 2, p. 8, ¶1074)

81 CR - Q.23

Paragraph 1102(1)(d)

See Also

Agence du revenu du Québec v. 7958501 Canada Inc., 2022 QCCA 314

7958501 Canada Inc. v. Agence du revenu du Québec, 2020 QCCQ 2424, aff'd 2022 QCCA 315

Paragraph 1102(1)(e)

See Also

Roger Dubois Inc. v. The Queen, 2014 DTC 1094 [at 3167], 2013 TCC 409, briefly aff'd 2015 CAF 235

Administrative Policy

Regulation 1102(2)

See Also

Cheshire Cavity Storage 1 Ltd & Anor v Commissioners for Her Majesty's Revenue and Customs, [2022] EWCA Civ 305

Toronto (City) v Municipal Property Assessment Corporation Region 09, 2010 CanLII 151281 (ON ARB)

Administrative Policy

Subsection 1102(4) - Improvements or Alterations to Leased Properties

Administrative Policy

IT-464R "Capital Cost Allowance - Leasehold Interest"

Subsection 1102(5) - Buildings on Leased Properties

Administrative Policy

Funding and erection of Apartment Base.

Revenue Canada Round Table CTF-1992 Conference, Q. 70 No. 922851 (Not Included in Final Report)

IT-464R "Capital Cost Allowance - Leasehold Interest"

Paragraph 1102(5)(a)

Subparagraph 1102(5)(a)(iii)

Administrative Policy

Subsection 1102(14) - Property Acquired by Transfer, Amalgamation or Winding-Up

Cases

Hickman Motors Ltd. v. Canada, 97 DTC 5363, [1997] 2 S.C.R. 336, [1998] 1 CTC 213

Administrative Policy

10 April 1997 T.I. 970422

90 C.R. - Q38

Subsection 1102(23)

Administrative Policy

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